Zara Supply Chain Analysis College Essay Mrahman
the availability of sufficient capacity . Typically , Zara manufactures about 50 of their own products within their internal Spanish factory network . If buyers feel the internal network cannot meet their required terms , they can outsource to other manufacturers , in other countries if necessary . This being the case , Zara outsources about 80 of their products to Europe , and only about 20 to Asia . Zara prefers to keep production within close geographical proximity in order to ensure fast response times for orders (Ferdows et al , 2003 sourcing strategies and supply chain configurations At Zara fast fashion is at the foundation of
sourcing strategies and supply chain configurations
At Zara fast fashion is at the foundation of
their sourcing strategy . Designs are conceived with the target market in mind - women and men between the ages of 16 and 35 who desire inexpensive , yet ahead-of-the-trend fashions . Zara s design conceptualizations can go from design to production to delivery in fifteen days . Their sourcing strategy entails a mix of 60 external fabrics sourcing , 40 internal fabrics sourcing , 50 in-house manufacturing , and 50 external manufacturing . Distribution of new fashions takes place twice a week , and each shipment always includes new models therefore stores are consistently presented with new merchandise and quantities are generally kept low . Rather than relying on forecasting methods , Zara produces limited quantities of the hottest fashions , and then quickly moves on to the next style . Customers know that if they want a new item , they must buy it quickly before it disappears off the shelves forever . This quot fast fashion quot system relies heavily on a constant exchange of information throughout every part of Zara 039 s supply chain . Most companies are not able to leverage this type of vertically-integrated supply chain due to layers of bureaucracy and barriers that impede communication between departments . Zara is structured , both organizationally and geographically , in such a way as to foster information transfer . Zara has...